The process for establishing a club fund is as follows:
1. A Memorandum of Understanding (MOU) is prepared and signed between the Canadian Rugby Foundation and the Club. This outlines the obligation of both parties. The basic points of the standard may include:
A) the funds are kept in trust for the purposes outlined in the MOU. These must be rugby related ie scholarships, funds for coaching, junior development etc.
B) as the funds accumulate interest is paid on an annual basis. This is currently set at 3.5 percent and we have always met this target though if there is an extraordinary downturn in the market this rate of return may be reduced. An annual administration charge of 150 for funds over 10k and under 50k is charged increasing to 250 for funds over 50k.
C) no interest is paid until the fund reaches 10k.
D) the capital of the fund cannot be withdrawn. Occasionally clubs want to engage in a capital campaign for new facilities. We are not set up for that purpose but if there is also an endowment element ie 50 percent of funds are directed into a permanent endowment fund, then it may be entertained.
E) one or two people are appointed from the club to liaise with the Canadian Rugby Foundation and direct the annual payout of interest. The interest can be left to accumulate within the fund.
2. All investments funds are pooled and invested by an institutional manager and supervised by our internal investment committee in accordance with the terms of our investment policy.
3. Tax receipts are issued for all donations over 20 dollars. The website is set up with the club name as a drop down menu choice and donors can donate online through Canada Helps or send in cheques. Donations can be set up monthly and this has proven to be a successful method for several clubs.
4. Our financial statements, investment policy, board of directors, and other financial information is available to view online to members and donors.
5. Our organization is composed of volunteers. We have no paid staff and contract out accounting and certain administration services. This enables us to keep our administration and other costs to less than 1 percent of our capital per year.
I hope this is helpful and will provide some guidance. Thanks and feel free to call or email with any further questions.
Canadian Rugby Foundation